From components suppliers and manufacturers to customers and safety regulators, every part of the complex automotive industry ecosystem relies on a network of transactions and knowledge that begins long before a car is created and continues long after it is purchased. And it’s an expanding network. The amount of data that automobile industry companies must keep track of is expanding, from support for evolving hardware and services to identifying the source and location of defective or counterfeit parts. With a shared, permissioned record of ownership, location, and movement of parts and items, automotive blockchain solutions development can help build efficiency, transparency, and trust. Furthermore, the flexibility of blockchain solutions makes them ideal for keeping up with emerging business models.
The Automotive Industry’s Current Issues and how Blockchain Solutions Help
Services for mobility
Cars today are complicated, networked software platforms on wheels, rather than just transportation units. Vehicles are increasingly required to include secure, seamless mobility services, as well as the ability to handle micropayments and other interactions with ride-sharing services, smart transportation infrastructure, and electric vehicle charging.
We can build a blockchain-based automobile eWallet that allows for cashless micropayments for tolls, congestion fees, electric charging, parking, and even payments between vehicles. With permissioned access to the trunk, the system can also allow a vehicle to be utilized as a secure drop point for packages.
Supply Chain Transformation
Automobile manufacture is genuinely international. Parts are acquired from all over the world, and finished automobiles can be driven anywhere on the planet. Traceability is critical in identifying a vehicle’s post-sale movements to combat counterfeit parts and defect-driven product recalls. Makers must be able to trace vehicle movements for regulators and buyers to maintain safety and reliability.
Boeing is using Blockchain, similar to the care sector, to make information from across the supply chain available to component sellers, aircraft owners and maintainers, and regulators. In the event of a component safety issue, the same technology that enables rapid and effective food recalls can assist automakers and parts suppliers in quickly determining where parts are located.
Payments underlie every step of the automotive supply chain, from parts orders to fleet purchase finance to managing letters of credit and obtaining insurance coverage. Because of its traceability and transparency, blockchain is ideal for tracking purchases, shipping arrangements, dealer transactions, and millions of micropayments in mobility services. Smart contracts built on the blockchain go far beyond tracking and visibility, allowing cash to be released only after a satisfying delivery.
Manufacturing behemoth as a conglomerate of industries spanning from agriculture to aerospace, Mahindra’s supply chain finance requirements is equally diversified.
They’re now collaborating with IBM to develop a shared blockchain platform for supplier-to-manufacturer transactions, allowing for near-real-time transaction visibility and simplified communications to boost confidence and transparency across the company’s ecosystem.